Understanding Conventional Mortgages
A conventional mortgage is a home loan that is not guaranteed or insured by a government agency. It provides borrowers with the flexibility to choose from various lenders and loan terms. At Mortgage Matt, we specialize in offering conventional mortgages that empower you on your path to homeownership.
Conventional Advantages:
Unlock the Best Interest Rates:
- Fannie Mae and Freddie Mac provide your lender with an insurance policy that your loan will meet certain performance standards. This allows us to offer the best interest rates, ensuring you get the most favorable terms on your mortgage.
- Unlike government loans that often charge a standard rate for all borrowers, regardless of credit score, conventional mortgages provide personalized pricing based on your creditworthiness. This means that your responsible financial habits can directly contribute to more favorable loan terms, putting you in control of your homeownership journey.
Mortgage Insurance with more flexibility:
- Just like with interest rates, the PMI associated with conventional loans when putting less than 20% down, will often allow for greater flexibility than a government backed mortgage. For starters, the mortgage insurance will automatically cancel once you reach 22% equity in your home. This means you can save on mortgages insurance costs over time, putting more money back in your pocket. Most government backed loans only offer mortgage insurance that never changes no matter how long you’ve been paying the mortgage on time
Fannie Mae HomeReady: Unlock More Possibilities
- Low down payments (as low as 3%)
- Flexible income sources, including non-borrower household income
- Reduced private mortgage insurance (PMI) costs
Freddie Mac Home Possible: Realize Your Dream
- Down payments as low as 3%
- Flexible credit requirements for diverse homebuyers
- Affordable mortgage insurance options, making homeownership achievable